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Bartering
Bartering by definition is a system of exchanging or trading goods or services to receive goods or services of equal value without using money in the process. 'Advantages of Bartering.' There are plenty of advantages of bartering, some of which are mentioned here. Bartering is a very simple system, and it's universally recognised and accepted. You do not have to worry about different currencies, so it takes away a lot of potential confusion. If there is a product that you own that you don't want nor need anymore, you may be able to trade it for one that may be of more value to you. You can also trade items that may be a necessity to others but not to you in order to receive an item that may be a necessity to you. There isn't any chance of over or under production of goods, as you can only distribute what you are already in possession of. You can also trade services for goods or goods for services, but there is still an idea of equivalent exchange. 'Disadvantages of Bartering. ' Wherever there are advantages to something, there are always disadvantages. Sometimes goods are too big to carry, or physically cannot be moved by one person or to a specific place. It would be quite hard to barter using a big lump of limestone, for example, as it is far too heavy to carry by yourself, and even more so if you are going long distances. You also need another person to want or need the item or you are planning or trying to barter with. For example, one wouldn't want to trade a new Mercedes Benz in exchange for an old, beat up Holden. Another significant disadvantage is that you physically have to be in the place to be able to barter with somebody. This means the process is pretty much confined to your local community, unless you are willing to travel a long distance or even travel interstate or overseas to trade with someone. Because there is basically a law of equivalent exchange, you may feel like the item or service you are being given in exchange is not worth the value of the item or service you are giving the other person. Unless you are trading a service, it is exceedingly easy to steal the item you are trading. For example, if you are trading an iPhone for a Samsung Galaxy (not that anyone really would want a Samsung product in exchange from an Apple product), your bartering partner could be untrustworthy and take the iPhone before giving you the Samsung, and just run off with your product without doing their share. Untrustworthy people with probably appear sometimes when you're bartering, so make sure that you are careful with who you are trading with. Anoher big disadvantage with bartering is that your goods might expire once you have had them for a few days. This can be the case when trading with food or drinks. If you traded an orange for an apple but didn't want to eat the apple straight away, it might get a bit gross, and you traded your orange for nothing. Keep that in mind if you are considering bartering.